Dhaka, Bangladesh (BBN)–Bangladesh’s stock exchanges from now on can seek information in many areas like additional disclosure, information documents and clarification from the companies willing to go public, officials said.
To materialise the aim, the Bangladesh Securities and Exchange Commission (BSEC) on Wednesday approved the revised Exchange’s Listing Regulations, 2015 by incorporating such provisions.
As per the Exchange’s Listing Regulations, 2015, the securities regulator will approve of initial public offering (IPO) proposal, only after getting recommendations from the exchanges.
BSEC approved the revised listing regulation following their proposal earlier submitted to the commission.
“The governance of the demutualised exchange is more impartial. That’s why the regulator empowered the exchanges by incorporating many new provisions in the listing regulations in an effort to ensure the compliance of listed companies,” said BSEC spokesperson Md Saifur Rahman.
As per the revised regulations, the exchanges will submit their recommendations on IPO proposal with a checklist to the BSEC.
Then the exchanges have the power to seek additional disclosure, information documents and certifications from the company to prepare final recommendation.
The exchanges will submit their final recommendation along with a declaration of giving listing to the regulatory body.
In the regulations, the regulator has also included the provision of voluntary de-listing.
Earlier, the Dhaka Stock Exchange (DSE) formed an expert panel to submit opinion regarding the companies’ IPO prospectus.
Later, the DSE abolished the expert panel as their IPO observations were not allegedly evaluated by the regulatory body.